Non-compliance to regulations hinders oil industry growth — Baru

The Group Managing Director, Nigerian National Petroleum
Corporation (NNPC), Dr Maikanti Baru on Thursday in Abuja stressed that
non-compliance to regulations by operators in the oil and gas sector was
seriously hindering industry growth.

Baru stated this at the 2018 annual stakeholders meeting of
the Department of Petroleum Resources (DPR), while speaking on the theme
“Regulatory Compliance as a veritable tool for safe and
efficient operations in Nigeria’s oil and gas Industry”.

“Challenges for the industry of this size would always be in
getting all operators to fully comply with regulations.

“Compliance with regulations, we would say, is the biggest
challenge in the industry today; just for people to do the right things
according to various laws and regulations we have in the industry”, Baru who
was represented by Mr Henry Ikem-Obih, the Chief Operating Officer, Downstream
of the NNPC stated.

He maintained that compliance with regulations would
eliminate crisis in the industry and guarantee long-term viability of the
industry, pointing out that if everyone plays his part in achieving and
sustaining compliance, there will be a pain-free experience for the consumers.

He added that operators as well would remain in
long-term viable businesses.

He further urged the DPR to ensure effective enforcement to
achieve total compliance in the sector for growth and development.

Mr Joseph Akinlaja, the Chairman, House Committee on
Petroleum Downstream, commended the effort of the DPR in ensuring effective
compliance with regulations in the sector.

Akinlaja He added that the enforcement of online
registration by operators was a step in the right direction.

He urged the regulator to include tanker owners and drivers
to be part of the stakeholders meeting, to enable them to understand the need
for compliance to regulations for the good of all.

He further said that the National Assembly would soon
conclude work on the Petroleum Industry Bill.

In his remark, Alhaji Salisu Abdulrahman, the Chairman,
Independent Petroleum Marketers Association of Nigeria (IPMAN), Suleja Depot,
also commended the DPR for the innovations to ensure that operators complied
with regulations.

Abdulrahman urged the regulator to also see how best to
ensure that marketers got their bridging claims at the right time.

He gave an assurance that marketers would continue to
support any move that would bring about growth and development in the sector.

Meanwhile, Oil prices were on track for solid weekly gains
on Friday after financial markets were lifted by hopes the United States and
China may soon resolve their trade disputes, and as OPEC-led crude output cuts
started to tighten supply.

Despite this, markets were held in check by expectations of
an economic slowdown in 2019.

International Brent crude futures LCOc1 were at $61.59 per
barrel at 0555 GMT, down 9 cents, or 0.15 per cent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were 4
cents below their last settlement, at $52.55 per barrel.

Brent and WTI are set for their second week of gains, rising
nearly 8 per cent and 10 per cent respectively.

Markets were being supported by hopes that the trade war
between Washington and Beijing may be resolved soon after officials said
three-day talks this week concluded constructively and that further
negotiations would likely follow this month.

Lower oil exports from Iran since last November, when U.S.
sanctions against it resumed, have also supported crude.

Despite this, concerns over the health of the global economy
lingered on, with signs mounting that China’s growth in 2018 and 2019 would be
the lowest since 1990.

“If we experience an economic slowdown, crude will
under-perform due to its correlation to growth,” said Hue Frame, portfolio
manager at Frame Funds in Sydney.

Most analysts have downgraded their global economic growth
forecasts below 3 per cent for 2019, with some even fearing a looming recession
amid trade disputes and spiraling debt.

On the supply side, oil markets are receiving support from
supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC)
aimed at reining in a glut that emerged in the second half of 2018.

A key reason for the emerging glut was the United States
where crude oil production C-OUT-T-EIA soared by more than 2 million barrels
per day (bpd) in 2018 to a record 11.7 million bpd.

Consultancy JBC Energy this week said it was likely that
U.S. crude oil production was already “significantly above 12 million bpd” by
January 2019.

Given the overall supply and demand balance, Swiss bank
Julius Baer said it was “price neutral” in its oil forecast.

“We see the oil market as well balanced into the foreseeable
future, as the petrol-nations make space for further U.S. shale production
growth,” said Norbert Ruecker, head of commodity research at the bank.

Maritime First Newspaper is a liberal Nigeria maritime online news aggregator and blog. The site offers news, blogs, and original content that covers maritime, politics, business, entertainment, health and safety, interviews, popular media, and local news.
For Inquires: 08023148914, 08069749755